<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


(Mark One)

/XX/   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934

For the quarterly period ended     September 30, 1999
                              -------------------------------------------------

                                        OR

/  /   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934

For the transition period from                     to
                              ---------------------  --------------------------


                                   --------------

For Quarter Ended September 30, 1999              Commission File No.  0-25648


                             AFG Investment Trust D
-------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

Delaware                                                       04-3157233
-------------------------------                         -----------------------
(State or other jurisdiction of                              (IRS Employer
 incorporation or organization)                              Identification No.)

88 Broad Street, Boston, MA                                        02110
----------------------------------------                        ---------------
(Address of principal executive offices)                         (Zip Code)

Registrant's telephone number, including area code     (617) 854-5800
                                                  -----------------------------

-------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report.)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X  No
                                             ---   ---

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes     No
                                                     ---    ---


<PAGE>




                             AFG Investment Trust D

                                    FORM 10-Q

                                      INDEX




<TABLE>
<CAPTION>
                                                                                  Page

<S>                                                                               <C>

PART I.  FINANCIAL INFORMATION:

    Item 1.   Financial Statements

      Statement of Financial Position
        at September 30, 1999 and December 31, 1998                                   3

      Statement of Operations
        for the three and nine months ended September 30, 1999 and 1998               4

      Statement of Changes in Participants' Capital
        for the nine months ended September 30, 1999                                  5

      Statement of Cash Flows
        for the nine months ended September 30, 1999 and 1998                         6

      Notes to the Financial Statements                                            7-11


    Item 2.   Management's Discussion and Analysis of Financial
              Condition and Results of Operations                                 12-16


PART II.  OTHER INFORMATION:

    Items 1 - 6                                                                      17

</TABLE>

                                       2

<PAGE>



                             AFG Investment Trust D

                         STATEMENT OF FINANCIAL POSITION
                    September 30, 1999 and December 31, 1998

                                   (Unaudited)


<TABLE>
<CAPTION>
                                                            September 30,   December 31,
                                                                 1999           1998
                                                            -------------   ------------
<S>                                                         <C>             <C>
ASSETS

Cash and cash equivalents                                   $ 11,312,017    $  9,100,016
Restricted cash                                                     --         5,110,315
Marketable securities                                            156,616            --
Rents receivable                                                 771,826       2,322,608
Accounts receivable - affiliate                                  617,683         448,039
Loan receivable - Kettle Valley                                   49,396            --
Investment - affiliate                                           668,813         699,626
Investment in Kettle Valley                                    4,365,372            --
Investment in Kirkwood                                         1,818,000            --
Equipment at cost, net of accumulated depreciation
   of $39,839,389 and $45,307,297 at September 30, 1999
   and December 31, 1998, respectively                        53,809,602      60,837,372
                                                             -----------     -----------

         Total assets                                       $ 73,569,325    $ 78,517,976
                                                             -----------     -----------
                                                             -----------     -----------

</TABLE>


<TABLE>
<CAPTION>

LIABILITIES AND PARTICIPANTS' CAPITAL

<S>                                                         <C>             <C>
Notes payable                                               $ 31,173,615    $ 35,030,985
Accrued interest                                                 236,779         332,001
Accrued liabilities                                               30,000         321,500
Accrued liabilities - affiliates                                  80,274          69,248
Deferred rental income                                           112,428         408,652
Other liabilities                                              1,488,403            --
Cash distributions payable to participants                       417,939         417,939
                                                             -----------     -----------

         Total liabilities                                    33,539,438      36,580,325
                                                             -----------     -----------

Participants' capital (deficit):
   Managing Trustee                                               10,542          12,140
   Special Beneficiary                                            86,968         100,157
   Class A Beneficiary Interests (1,934,755 Interests;
     initial purchase price of $25 each)                      33,460,829      35,230,782
   Class B Beneficiary Interests (3,142,083 Interests;
     initial purchase price of $5 each)                        8,086,870       8,209,894
   Treasury Interests (154,275 Class A Interests at Cost)     (1,615,322)     (1,615,322)
                                                             -----------     -----------

         Total participants' capital                          40,029,887      41,937,651
                                                             -----------     -----------

         Total liabilities and participants' capital        $ 73,569,325    $ 78,517,976
                                                             -----------     -----------
                                                             -----------     -----------
</TABLE>

                     The accompanying notes are an integral
                       part of these financial statements.

                                       3
<PAGE>



                             AFG Investment Trust D

                             STATEMENT OF OPERATIONS
         for the three and nine months ended September 30, 1999 and 1998

                                   (Unaudited)



<TABLE>
<CAPTION>
                                                   Three Months                             Nine Months
                                               Ended September 30,                     Ended September 30,
                                              1999               1998                1999                 1998
                                              ----               ----                ----                 ----

<S>                                         <C>                <C>                <C>                <C>
Income:

    Lease revenue                           $ 3,538,502        $ 4,902,809        $ 11,268,966       $ 14,482,399

    Interest income                             161,744            172,028             483,523            612,151

    Gain (loss) on sale of equipment            224,486              9,268             392,774           (110,235)

    Other income                                     --                 --             261,116                 --
                                             ----------         ----------         -----------        -----------
         Total income                         3,924,732          5,084,105          12,406,379         14,984,315
                                             ----------         ----------         -----------        -----------


Expenses:

    Depreciation and amortization             1,738,932          2,506,436           5,879,479          8,475,754

    Interest expense                            631,869            822,351           2,023,046          2,652,655

    Equipment management fees - affiliates      185,848            234,149             580,952            685,949

    Operating expenses - affiliate              310,490             87,616             609,420            388,427
                                             ----------         ----------         -----------        -----------

         Total expenses                       2,867,139          3,650,552           9,092,897         12,202,785
                                             ----------         ----------         -----------        -----------


Net income                                  $ 1,057,593        $ 1,433,553        $  3,313,482       $  2,781,530
                                             ----------         ----------         -----------        -----------
                                             ----------         ----------         -----------        -----------


Net income
   per Class A Beneficiary Interest         $     0.34         $     0.07         $      1.07        $      0.26
                                             ----------         ----------         -----------        -----------
                                             ----------         ----------         -----------        -----------


   per Class B Beneficiary Interest         $     0.09         $     0.35         $      0.29        $      0.43
                                             ----------         ----------         -----------        -----------
                                             ----------         ----------         -----------        -----------

Cash distributions declared
   per Class A Beneficiary Interest         $     0.41         $     0.41         $      2.00        $      1.23
                                             ----------         ----------         -----------        -----------
                                             ----------         ----------         -----------        -----------

   per Class B Beneficiary Interest         $     0.11         $     1.89         $      0.33        $      2.22
                                             ----------         ----------         -----------        -----------
                                             ----------         ----------         -----------        -----------

</TABLE>

                   The accompanying notes are an integral part
                         of these financial statements.


                                       4

<PAGE>



                             AFG Investment Trust D

                 STATEMENT OF CHANGES IN PARTICIPANTS' CAPITAL
                  for the nine months ended September 30, 1999

                                   (Unaudited)


<TABLE>
<CAPTION>
                                   Managing    Special     Class A Beneficiaries  Class B Beneficiaries
                                   Trustee   Beneficiary   ---------------------  ----------------------   Treasury
                                    Amount     Amount      Interests     Amount   Interests      Amount    Interests      Total
                                    ------     ------      ---------   ---------  ---------    ---------   ----------     -----


<S>                                 <C>       <C>         <C>        <C>          <C>        <C>          <C>          <C>
Balance at December 31, 1998        $ 12,140  $  100,157   1,934,755  $35,230,782  3,142,083  $ 8,209,894  $(1,615,322) $41,937,651

     Net income                       35,735     294,814          --    2,077,033         --      905,900           --    3,313,482

     Unrealized gain on marketable
        securities                       281       2,317          --       17,748         --        7,741           --       28,087
                                    ---------  ----------  ---------   ----------- ---------   -----------  -----------  ----------

Comprehensive income                  36,016     297,131          --    2,094,781         --  $   913,641           --    3,341,569
                                    ---------  ----------  ---------   ----------- ---------   -----------  -----------  ----------

Cash distributions declared          (37,614)   (310,320)         --   (3,864,734)        --   (1,036,665)          --   (5,249,333)
                                    ---------  ----------  ---------   ----------- ---------   -----------  -----------  ----------


Balance at September 30, 1999       $ 10,542  $   86,968   1,934,755  $33,460,829  3,142,083  $ 8,086,870  $(1,615,322) $40,029,887
                                    ---------  ----------  ---------   ----------- ---------   -----------  -----------  ----------
                                    ---------  ----------  ---------   ----------- ---------   -----------  -----------  ----------

</TABLE>



                   The accompanying notes are an integral part
                         of these financial statements.

                                       5

<PAGE>



                             AFG Investment Trust D

                             STATEMENT OF CASH FLOWS
              for the nine months ended September 30, 1999 and 1998

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                  1999           1998
                                                                                  ----           ----
<S>                                                                          <C>             <C>
Cash flows from (used in) operating activities:
Net income                                                                   $  3,313,482    $  2,781,530

Adjustments to reconcile net income to net cash from operating activities:
         Depreciation and amortization                                          5,879,479       8,475,754
         (Gain) loss on sale of equipment                                        (392,774)        110,235

Changes in assets and liabilities Decrease (increase) in:
         Cash held in escrow                                                         --           (56,891)
         Rents receivable                                                       1,550,782         842,684
         Accounts receivable - affiliate                                         (169,644)         19,009
         Loan receivable - Kettle Valley                                          (49,396)           --
    Increase (decrease) in:
         Accrued interest                                                         (95,222)       (131,460)
         Accrued liabilities                                                     (291,500)        141,450
         Accrued liabilities - affiliates                                          11,026         (18,168)
         Deferred rental income                                                  (296,224)        115,950
                                                                              ------------    ------------

            Net cash from operating activities                                  9,460,009      12,280,093
                                                                              ------------    ------------

Cash flows from (used in) investing activities:
    Purchase of marketable securities                                            (128,529)           --
    Investment - affiliate                                                         30,813        (712,313)
    Investment in Kettle Valley                                                (3,064,700)           --
    Investment in Kirkwood                                                     (1,818,000)           --
    Purchase of equipment                                                            --          (179,510)
    Proceeds from equipment sales                                               1,541,065       1,342,889
    Other liabilities                                                           1,488,403            --
                                                                              ------------    ------------

            Net cash from (used in) investing activities                       (1,950,948)        451,066
                                                                              ------------    ------------

Cash flows from (used in) financing activities:
    Principal payments - notes payable                                         (5,158,042)     (6,595,058)
    Distributions paid                                                         (5,249,333)     (9,800,280)
    Restricted cash                                                             5,110,315       5,610,790
    Purchase of treasury interests                                                   --            (9,000)
                                                                              ------------    ------------

            Net cash used in financing activities                              (5,297,060)    (10,793,548)
                                                                              ------------    ------------

Net increase in cash and cash equivalents                                       2,212,001       1,937,611

Cash and cash equivalents at beginning of period                                9,100,016       4,218,502
                                                                              ------------    ------------

Cash and cash equivalents at end of period                                   $ 11,312,017    $  6,156,113
                                                                              ------------    ------------
                                                                              ------------    ------------

Supplemental disclosure of cash flow information:
    Cash paid during the period for interest                                 $  2,118,268    $  2,784,115
                                                                              ------------    ------------
                                                                              ------------    ------------

</TABLE>


Supplemental disclosure of non-cash activity: See Note 4 to the financial
    statements.


                  The accompanying notes are an integral part
                         of these financial statements

                                       6

<PAGE>



                             AFG Investment Trust D

                        Notes to the Financial Statements
                               September 30, 1999

                                   (Unaudited)


NOTE 1 - BASIS OF PRESENTATION

     The financial statements presented herein are prepared in conformity with
generally accepted accounting principles and the instructions for preparing Form
10-Q under Rule 10-01 of Regulation S-X of the Securities and Exchange
Commission and are unaudited. As such, these financial statements do not include
all information and footnote disclosures required under generally accepted
accounting principles for complete financial statements and, accordingly, the
accompanying financial statements should be read in conjunction with the
footnotes presented in the 1998 Annual Report. Except as disclosed herein, there
has been no material change to the information presented in the footnotes to the
1998 Annual Report.

     In the opinion of management, all adjustments (consisting of normal and
recurring adjustments) considered necessary to present fairly the financial
position at September 30, 1999 and December 31, 1998 and results of operations
for the three and nine months ended September 30, 1999 and 1998 have been made
and are reflected.


NOTE 2 - CASH EQUIVALENTS AND MARKETABLE SECURITIES

     The Trust considers all highly liquid investments with an original maturity
of three months or less to be cash equivalents. Marketable securities consist of
equity securities which are classified as available-for-sale. Available-for-sale
securities are carried at fair value, with unrealized gains and losses reported
as a separate component of participants' capital. The Trust recorded an
unrealized gain on available-for-sale securities of $28,087 during the nine
months ended September 30, 1999 that is included as a separate component of
participants' capital.


NOTE 3 - REVENUE RECOGNITION

     Rents are payable to the Trust monthly, quarterly or semi-annually and no
significant amounts are calculated on factors other than the passage of time.
The leases are accounted for as operating leases and are noncancellable. Rents
received prior to their due dates are deferred. In certain instances, the Trust
may enter primary-term, renewal or re-lease agreements which expire beyond the
Trust's anticipated dissolution date. This circumstance is not expected to
prevent the orderly wind-up of the Trust's business activities as the Managing
Trustee and the Advisor would seek to sell the then remaining equipment assets
either to the lessee or to a third party, taking into consideration the amount
of future noncancellable rental payments associated with the attendant lease
agreements. Future minimum rents of $17,710,495 are due as follows:

<TABLE>

<S>                                                           <C>
         For the year ending September 30, 2000               $ 9,805,262
                                           2001                 4,377,986
                                           2002                 3,483,896
                                           2003                    43,351
                                                              -----------

                                           Total              $17,710,495
                                                              -----------
                                                              -----------

</TABLE>

NOTE 4 - INVESTMENT IN KETTLE VALLEY

     On March 1, 1999, the Trust and an affiliated trust (collectively, the
"Buyers") formed EFG/Kettle Development LLC, a Delaware limited liability
company, for the purpose of acquiring a 49.9% indirect ownership interest (the
"Interest") in a real estate development in Kelowna, British Columbia called
Kettle Valley. EFG/Kettle Development LLC, upon receiving the Buyers' equity
investment, purchased the Interest from a special purpose

                                       7

<PAGE>


                             AFG Investment Trust D
                        Notes to the Financial Statements

                                   (Continued)


company ("SPC") whose subsidiaries own a 99.9% limited partnership interest in
Kettle Valley Development Limited Partnership ("KVD LP"). The SPC and its
subsidiaries were established by the seller, in part, for income tax purposes
and have no business interests other than the development of Kettle Valley. KVD
LP is a Canadian Partnership that owns the property, consisting of approximately
280 acres of land. The project, which is in the early stages of being marketed
to homebuyers, is zoned for 1,000 residential units in addition to commercial
space that, currently, is being constructed. The seller is an unaffiliated
third-party company and has retained the remaining 50.1% ownership interest in
the SPC. A newly organized Canadian affiliate of EFG replaced the original
general partner of KVD LP on March 1, 1999.

     The Trust's ownership share in EFG/Kettle Development LLC is 49.396% and
had a cost of $4,322,150, which was funded with cash of $3,021,478 and a
non-recourse note for $1,300,672. The note bears interest at an annualized rate
of 7.5% and will be fully amortized over 34 months commencing April 1, 1999. The
note is secured only by the Trust's stock interests in the SPC. In addition, the
seller purchased a residual sharing interest in a Boeing 767-300 owned by the
Buyers and leased to Scandinavian Airlines System ("SAS"). The seller paid
$3,013,206 to the Buyers ($1,488,403, or 49.396% to the Trust) for the residual
interest, which is subordinate to certain preferred payments to be made to the
Buyers in connection with the aircraft. Payment of the residual interest is due
only to the extent that the Trust receives net residual proceeds from the
aircraft. The residual interest is non-recourse to the Buyers and is reflected
as Other Liabilities on the accompanying Statement of Financial Position at
September 30, 1999. Investment in Kettle Valley at September 30, 1999 represents
the actual cost paid by the Trust plus a 1% acquisition fee.


NOTE 5 - INVESTMENT IN KIRKWOOD

     On May 1, 1999, the Trust and three affiliated trusts (collectively the
"Trusts") and another affiliate formed EFG/Kirkwood Capital LLC ("EFG/Kirkwood")
for the purpose of acquiring preferred and common stock interests in Kirkwood
Associates Inc. ("KAI"). The Trusts purchased Class A Interests in EFG/Kirkwood
and the other affiliate purchased Class B Interests in EFG/Kirkwood. Generally,
the Class A Interest holders are entitled to certain preferred returns prior to
distribution payments to the Class B Interest holders. KAI owns a ski resort, a
local public utility, and land which is held for development. The resort is
located in Kirkwood, California and is approximately 30 miles from South Lake
Tahoe, Nevada. The Trust's ownership interest in EFG/Kirkwood had a cost of
$1,818,000, including a 1% acquisition fee ($18,000) paid to EFG.


NOTE 6 - EQUIPMENT

     The following is a summary of equipment owned by the Trust at September 30,
1999. Remaining Lease Term (Months), as used below, represents the number of
months remaining from September 30, 1999 under contracted lease terms and is
presented as a range when more than one lease agreement is contained in the
stated equipment category. A Remaining Lease Term equal to zero reflects
equipment either held for sale or re-lease or being leased on a month-to-month
basis. In the opinion of EFG, the acquisition cost of the equipment did not
exceed its fair market value.

                                       8

<PAGE>

                             AFG Investment Trust D
                        Notes to the Financial Statements

                                  (Continued)

<TABLE>
<CAPTION>

                                                               Remaining
                                                              Lease Term                       Equipment
         Equipment Type                                        (Months)                         at Cost
----------------------------                                 -------------                  --------------
<S>                                                       <C>                              <C>
Aircraft                                                           1-39                     $   52,946,296
Vessels                                                              36                         13,875,360
Locomotives                                                           9                         10,684,643
Construction and mining                                            0-33                          4,734,756
Materials handling                                                 0-44                          4,605,045
Manufacturing                                                       0-3                          3,537,759
Miscellaneous                                                      0-14                          1,953,583
Tractors & heavy duty trucks                                          0                            545,117
Computers and peripherals                                          0-10                            370,940
Research & test                                                       6                            338,749
Motor vehicles                                                        0                             38,499
Retail store fixtures                                                 3                             11,712
Communications                                                        0                              6,532
                                                                                            --------------

                                                   Total equipment cost                         93,648,991

                                               Accumulated depreciation                        (39,839,389)
                                                                                            --------------

                             Equipment, net of accumulated depreciation                     $   53,809,602
                                                                                            --------------
                                                                                            --------------

</TABLE>

     The Trust's equipment portfolio includes certain assets in which the Trust
holds a proportionate ownership interest. In such cases, the remaining interests
are owned by EFG or an affiliated equipment leasing program sponsored by EFG.
The Trust and each affiliate individually report, in proportion to their
respective ownership interests, their respective shares of assets, liabilities,
revenues, and expenses associated with the equipment. At September 30, 1999, the
Trust's equipment portfolio included equipment having a proportionate original
cost of $43,057,634, representing approximately 46% of total equipment cost.

     The summary above includes fully-depreciated equipment held for sale or
re-lease with a cost of $746,763. The Managing Trustee is actively seeking the
sale or re-lease of all equipment not on lease.


NOTE 7 - RELATED PARTY TRANSACTIONS

     All operating expenses incurred by the Trust are paid by EFG on behalf of
the Trust and EFG is reimbursed at its actual cost for such expenditures. Fees
and other costs incurred during the nine month periods ended September 30, 1999
and 1998, which were paid or accrued by the Trust to EFG or its Affiliates, are
as follows:

<TABLE>
<CAPTION>

                                                           1999            1998
                                                      ----------      ----------

<S>                                                   <C>             <C>
Equipment acquisition fees                            $   19,285      $    2,556
Equipment management fees                                580,952         685,949
Administrative charges                                   133,522          60,138
Reimbursable operating expenses
    due to third parties                                 475,898         328,289
                                                      ----------      ----------

                                Total                 $1,209,657      $1,076,932
                                                      ----------      ----------
                                                      ----------      ----------

</TABLE>

                                       9

<PAGE>

                             AFG Investment Trust D
                        Notes to the Financial Statements

                                  (Continued)


     All rents and proceeds from the sale of equipment are paid directly to
either EFG or to a lender. EFG temporarily deposits collected funds in a
separate interest-bearing escrow account prior to remittance to the Trust. At
September 30, 1999, the Trust was owed $617,683 by EFG for such funds and the
interest thereon. These funds were remitted to the Trust in October 1999.

     Administrative charges represent amounts owed to EFG, pursuant to Section
10.4(c) of the Trust Agreement, for persons employed by EFG who are engaged in
providing administrative services to the Trust. Administrative charges and
reimbursable operating expenses for the nine months ended September 30, 1999
include adjustments for 1998 actual costs of approximately $38,000 and $28,000,
respectively.


NOTE 8 - NOTES PAYABLE

     Notes payable at September 30, 1999 consisted of installment notes of
$31,173,615 payable to banks and institutional lenders. The notes bear interest
rates ranging between 6.92% and 13.75%, except for one note which bears a
fluctuating interest rate based on LIBOR (5.38% at September 30, 1999) plus a
margin. All of the installment notes are non-recourse and are collateralized by
the equipment and assignment of the related lease payments, except for one note
which is collateralized by certain stock interests (see Note 4). Generally, the
installment notes will be fully amortized by noncancellable rents. However, the
Trust has balloon payment obligations of $19,980,682, $1,400,074 and $282,421 at
the expiration of lease terms related to an aircraft leased to SAS, certain rail
equipment and its interest in an aircraft leased to Reno Air, Inc.,
respectively. The carrying amount of notes payable approximates fair value at
September 30, 1999.

    The annual maturities of notes payable are as follows:

<TABLE>
<CAPTION>

<S>                                    <C>               <C>
    For the year ending September 30,  2000              $    6,729,080
                                       2001                  22,311,328
                                       2002                   1,840,251
                                       2003                     292,956
                                                         --------------

                                       Total             $   31,173,615
                                                         --------------
                                                         --------------

</TABLE>


NOTE 9 - LEGAL PROCEEDINGS

     On or about January 15, 1998, certain plaintiffs (the "Plaintiffs") filed a
class and derivative action, captioned LEONARD ROSENBLUM, ET AL. V. EQUIS
FINANCIAL GROUP LIMITED PARTNERSHIP, ET AL., in the United States District Court
for the Southern District of Florida (the "Court") on behalf of a proposed class
of investors in 28 equipment leasing programs sponsored by EFG, including the
Trust (collectively, the "Nominal Defendants"), against EFG and a number of its
affiliates, including the Managing Trustee, as defendants (collectively, the
"Defendants"). Certain of the Plaintiffs, on or about June 24, 1997, had filed
an earlier derivative action, captioned LEONARD ROSENBLUM, ET AL. V. EQUIS
FINANCIAL GROUP LIMITED PARTNERSHIP, ET AL., in the Superior Court of the
Commonwealth of Massachusetts on behalf of the Nominal Defendants against the
Defendants. Both actions are referred to herein collectively as the "Class
Action Lawsuit." The Class Action Lawsuit was divided into two sub-classes on
March 22, 1999.

      On May 26, 1999, the Court issued its Order and Final Judgment approving
settlement of the Class Action Lawsuit with respect to claims asserted by the
Plaintiffs on behalf of the sub-class that includes the Trust. Claims involving
the second sub-class, not including the Trust, remain pending. As a result of
the settlement, the Trust declared a special cash distribution of $1,572,405,
including legal fees for Plaintiffs' counsel of $84,520, that was paid in July
1999. In addition, the parent company of the Managing Trustee, Equis II
Corporation, agreed to commit $3,537,910 of its Class B Capital Contributions
(paid in connection with its purchase of Class B Interests in July 1997) to the
Trust for the Trust's investment purposes. In the absence of this commitment,
Equis II Corporation would have been entitled to receive a Class B Capital
Distribution for this amount pursuant to the

                                       10

<PAGE>

Trust Agreement, as amended. The Trust's share of legal fees and expenses
related to the Class Action Lawsuit, including the fees for Plaintiff's counsel
referenced above, was estimated to be approximately $290,000, all of which was
accrued and expensed by the Trust in 1998.


NOTE 10 - SUBSEQUENT EVENT

     In October 1999, the Trust sold its 50% interest in a Boeing 747 aircraft
formerly leased to British Airways PLC that had been fully depreciated. The
Trust received sale proceeds of $1,000,000.

                                       11

<PAGE>

                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

     AFG Investment Trust D (the "Trust") commenced operations in 1992 and,
pursuant to its Trust Agreement, the Trust is scheduled to be dissolved by
December 31, 2006. The Trust was a Nominal Defendant in a Class Action Lawsuit
that was settled, with respect to the Trust and certain affiliates, in May 1999.
See Note 9 to the accompanying financial statements.

     Certain statements in this quarterly report that are not historical fact
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and are subject to a variety of risks
and uncertainties. There are a number of important factors that could cause
actual results to differ materially from those expressed in any forward-looking
statements made herein. These factors include, but are not limited to, the
collection of the Trust's contracted rents, the realization of residual proceeds
for the Trust's equipment, and future economic conditions.

YEAR 2000 ISSUE

     The Year 2000 Issue generally refers to the capacity of computer
programming logic to correctly identify the calendar year. Many companies
utilize computer programs or hardware with date sensitive software or embedded
chips that could interpret dates ending in "00" as the year 1900 rather than the
year 2000. In certain cases, such errors could result in system failures or
miscalculations that disrupt the operations of the affected businesses. The
Trust uses information systems provided by Equis Financial Group Limited
Partnership (formerly American Finance Group) ("EFG") and has no information
systems of its own. EFG has adopted a plan to address the Year 2000 Issue that
consists of four phases: assessment, remediation, testing, and implementation
and has elected to utilize principally internal resources to perform all phases.
EFG has completed its Year 2000 project at an aggregate cost of less than
$50,000 and at a di minimus cost to the Trust. All costs incurred in connection
with EFG's Year 2000 project have been expensed as incurred.

     EFG's primary information software was coded by a third party at the point
of original design to use a four digit field to identify calendar year. All of
the Trust's lease billings, cash receipts and equipment remarketing processes
are performed using this proprietary software. In addition, EFG has gathered
information about the Year 2000 readiness of significant vendors and third party
servicers and continues to monitor developments in this area. All of EFG's
peripheral computer technologies, such as its network operating system and
third-party software applications, including payroll, depreciation processing,
and electronic banking, have been evaluated for potential programming changes
and have required only minor modifications to function properly with respect to
dates in the year 2000 and thereafter. EFG understands that each of its and the
Trust's significant vendors and third-party servicers are in the process, or
have completed the process, of making their systems Year 2000 compliant.
Substantially all parties queried have indicated that their systems are Year
2000 compliant.

     Presently, EFG is not aware of any outside customer with a Year 2000 Issue
that would have a material effect on the Trust's results of operations,
liquidity, or financial position. The Trust's equipment leases were structured
as triple net leases, meaning that the lessees are responsible for, among other
things, (i) maintaining and servicing all equipment during the lease term, (ii)
ensuring that all equipment functions properly and is returned in good
condition, normal wear and tear excepted, and (iii) insuring the assets against
casualty and other events of loss. Non-compliance with lease terms on the part
of a lessee, including failure to address Year 2000 Issues could result in lost
revenues and impairment of residual values of the Trust's equipment assets under
a worst-case scenario.

     EFG believes that its Year 2000 compliance plan will be effective in
resolving all material Year 2000 risks in a timely manner and that the Year 2000
Issue will not pose significant operational problems with respect to its
computer systems or result in a system failure or disruption of its or the
Trust's business operations. However, EFG has no means of ensuring that all
customers, vendors and third-party servicers will conform ultimately to Year
2000 standards. The effect of this risk to the Trust is not determinable.

                                       12

<PAGE>

                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION


THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE AND NINE
MONTHS ENDED SEPTEMBER 30, 1998:

Results of Operations

     For the three and nine months ended September 30, 1999, the Trust
recognized lease revenue of $3,538,502 and $11,268,966, respectively, compared
to $4,902,809 and $14,482,399 for the same periods in 1998. The decrease in
lease revenue from 1998 to 1999 resulted principally from lease term expirations
and the sale of equipment. The level of lease revenue to be recognized by the
Trust in the future may be impacted by future reinvestment; however, the extent
of such impact cannot be determined at this time.

     The Trust's equipment portfolio includes certain assets in which the Trust
holds a proportionate ownership interest. In such cases, the remaining interests
are owned by EFG or an affiliated equipment leasing program sponsored by EFG.
Proportionate equipment ownership enables the Trust to further diversify its
equipment portfolio by participating in the ownership of selected assets,
thereby reducing the general levels of risk which could result from a
concentration in any single equipment type, industry or lessee. The Trust and
each affiliate individually report, in proportion to their respective ownership
interests, their respective shares of assets, liabilities, revenues, and
expenses associated with the equipment.

     Interest income for the three and nine months ended September 30, 1999 was
$161,744 and $483,523, respectively, compared to $172,028 and $612,151 for the
same periods in 1998. Generally, interest income is generated from the temporary
investment of rental receipts and equipment sale proceeds in short-term
instruments. Interest income in 1999 and 1998 includes interest earned on
proceeds resulting from the issuance of Class B Interests. The amount of future
interest income is expected to fluctuate as a result of changing interest rates,
the collection of lease revenue, and the proceeds from equipment sales, among
other factors.

     The Trust received $261,116 in 1999 as a breakage fee from a third-party
seller in connection with a transaction for new investments that was canceled by
the seller in the first quarter of 1999. This amount is reflected as Other
Income on the accompanying Statement of Operations for the nine months ended
September 30, 1999.

     During the three and nine months ended September 30, 1999, the Trust sold
equipment having a net book value of $139,333 and $1,148,291 to existing lessees
and third parties. These sales resulted in a net gain, for financial statement
purposes, of $224,486 and $392,774, respectively.

     During the three and nine months ended September 30, 1998, the Trust sold
equipment having a net book value of $1,258,181 and $1,453,124 to existing
lessees and third parties. These sales resulted in a net gain of $9,268 and a
net loss of $110,235, respectively, for financial statement purposes.

     It cannot be determined whether future sales of equipment will result in a
net gain or a net loss to the Trust, as such transactions will be dependent upon
the condition and type of equipment being sold and its marketability at the time
of sale. In addition, the amount of gain or loss reported for financial
statement purposes is partly a function of the amount of accumulated
depreciation associated with the equipment being sold.

     The ultimate realization of residual value for any type of equipment is
dependent upon many factors, including EFG's ability to sell and re-lease
equipment. Changing market conditions, industry trends, technological advances,
and many other events can converge to enhance or detract from asset values at
any given time. EFG attempts to monitor these changes in order to identify
opportunities which may be advantageous to the Trust and which will maximize
total cash returns for each asset.

     The total economic value realized for each asset is comprised of all
primary lease term revenue generated from that asset, together with its residual
value. The latter consists of cash proceeds realized upon the asset's

                                       13

<PAGE>

                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION

sale in addition to all other cash receipts obtained from renting the asset on a
re-lease, renewal or month-to-month basis. The Trust classifies such residual
rental payments as lease revenue. Consequently, the amount of gain or loss
reported in the financial statements is not necessarily indicative of the total
residual value the Trust achieved from leasing the equipment.

     Depreciation and amortization expense for the three and nine months ended
September 30, 1999 was $1,738,932 and $5,879,479, respectively, compared to
$2,506,436 and $8,475,754 for the same periods in 1998. For financial reporting
purposes, to the extent that an asset is held on primary lease term, the Trust
depreciates the difference between (i) the cost of the asset and (ii) the
estimated residual value of the asset on a straight-line basis over such term.
For purposes of this policy, estimated residual values represent estimates of
equipment values at the date of primary lease expiration. To the extent that an
asset is held beyond its primary lease term, the Trust continues to depreciate
the remaining net book value of the asset on a straight-line basis over the
asset's remaining economic life.

     Interest expense was $631,869 and $2,023,046 or 17.9% and 18% of lease
revenue for the three and nine months ended September 30, 1999, respectively,
compared to $822,351 and $2,652,655 or 16.8% and 18.3% of lease revenue for each
of the same periods in 1998. Management fees were $185,848 and $580,952 for the
three and nine months ended September 30, 1999, respectively, compared to
$234,149 and $685,949 for the same periods in 1998. Management fees are based on
5% of gross lease revenue generated by operating leases and 2% of gross lease
revenue generated by full payout leases. Management fees also include a 1%
management fee on non-equipment investments, excluding cash.

     Operating expenses consist principally of administrative charges,
professional service costs, such as audit and legal fees, as well as printing,
distribution and remarketing expenses. Operating expenses were $310,490 and
$609,420 during the three and nine months ended September 30, 1999 compared to
$87,616 and $388,427 during the same periods in 1998. Operating expenses were
higher in 1999 principally as a result of legal fees incurred of approximately
$229,000 related to the Trust's investment in Kettle Valley and Kirkwood. The
amount of future operating expenses cannot be predicted with certainty; however,
such expenses are usually higher during the acquisition and liquidation phases
of a trust. Other fluctuations typically occur in relation to the volume and
timing of remarketing activities.

LIQUIDITY AND CAPITAL RESOURCES AND DISCUSSION OF CASH FLOWS

     The Trust by its nature is a limited life entity. As an equipment leasing
program, the Trust's principal operating activities derive from asset rental
transactions. Accordingly, the Trust's principal source of cash from operations
is provided by the collection of periodic rents. These cash inflows are used to
satisfy debt service obligations associated with leveraged leases, and to pay
management fees and operating costs. Operating activities generated net cash
inflows of $9,460,009 and $12,280,093 for the nine months ended September 30,
1999 and 1998, respectively. Future renewal, re-lease and equipment sale
activities will cause a decline in the Trust's primary-term lease revenues and
corresponding sources of operating cash. Overall, expenses associated with
rental activities, such as management fees, and net cash flow from operating
activities also will decline as the Trust experiences a higher frequency of
remarketing events.

     The Trust's equipment is leased by a number of creditworthy,
investment-grade companies and, to date, the Trust has not experienced any
material collection problems and has not considered it necessary to provide an
allowance for doubtful accounts. Notwithstanding a positive collection history,
there is no assurance that all future contracted rents will be collected or that
the credit quality of the Trust's lessees will be maintained. Collection risk
could increase in the future, particularly as the Trust remarkets its equipment
and enters re-lease agreements with different lessees. The Managing Trustee will
continue to evaluate and monitor the Trust's experience in collecting accounts
receivable to determine whether a future allowance for doubtful accounts may
become appropriate.

                                       14

<PAGE>


                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION


     Cash expended for asset acquisitions and cash realized from asset disposal
transactions are reported under investing activities on the accompanying
Statement of Cash Flows. During the nine months ended September 30, 1999, the
Trust expended $3,064,700 to acquire its investment in Kettle Valley. In
connection with the investment, the Trust was paid $1,488,403 for a residual
interest in an aircraft in which the Trust owns an interest (see Note 4). Also
during the nine months ended September 30, 1999, the Trust expended $1,818,000
to acquire its investment in Kirkwood (see Note 5). The Trust expended $179,510
to acquire equipment during the nine months ended September 30, 1998 and, during
the nine months ended September 30, 1999, the Trust realized net cash proceeds
from asset disposals of $1,541,065 compared to $1,342,889 for the same period in
1998. Future inflows of cash from asset disposal transactions will vary in
timing and amount and will be influenced by many factors including, but not
limited to, the frequency and timing of lease expirations, the type of equipment
being sold, its condition and age, and future market conditions.

     The Trust obtained long-term financing in connection with certain equipment
leases. The origination of such indebtedness and the subsequent repayments of
principal are reported as components of financing activities. Generally, each
note payable is recourse only to the specific equipment financed and to the
minimum rental payments contracted to be received during the debt amortization
period (which period generally coincides with the lease rental term). As rental
payments are collected, a portion or all of the rental payment is used to repay
the associated indebtedness. During 1999, the Trust leveraged $1,300,672 of its
investment in Kettle Valley that will be amortized over 34 months (see Note 4).
In the near-term, the amount of cash used to repay debt obligations may increase
due to the financing of other newly acquired assets. Thereafter, the amount of
cash used to repay debt obligations will decline. In addition, the Trust has
balloon payment obligations of $19,980,682, $1,400,074 and $282,421 at the
expiration of lease terms related to the SAS Aircraft, certain rail equipment
and the Reno Aircraft, respectively.

     At September 30, 1999, the Trust was due aggregate future minimum lease
payments of $17,710,495 from contractual lease agreements (see Note 3 to the
financial statements), a portion of which will be used to amortize the principal
balance of notes payable of $31,173,615 (see Note 8 to the financial
statements). Additional cash inflows will be realized from future remarketing
activities, such as lease renewals and equipment sales, the timing and extent of
which cannot be predicted with certainty. This is because the timing and extent
of equipment sales is often dependent upon the needs and interests of the
existing lessees. Some lessees may choose to renew their lease contracts, while
others may elect to return the equipment. In the latter instances, the equipment
could be re-leased to another lessee or sold to a third party. Accordingly, as
the Trust matures and a greater level of its equipment assets becomes available
for remarketing, the cash flows of the Trust will become less predictable. In
addition, the Trust will have cash needs to satisfy interest on indebtedness and
to pay management fees and operating expenses. Ultimately, the Trust is expected
to meet its future disbursement obligations and to distribute any excess of cash
inflows over cash outflows to the Participants in accordance with the Trust
Agreement. However, several factors, including month-to-month lease extensions,
lessee defaults, equipment casualty events, and early lease terminations could
alter the Trust's anticipated cash flows as described herein and in the
accompanying financial statements and result in fluctuations to the Trust's
periodic cash distribution payments.

     It is the intention of the Managing Trustee to maintain a cash distribution
level that is consistent with the operating cash flows of the Trust and to
optimize the long-term value of the Trust. A distribution level that is higher
than the Trust's operating cash flows could compromise the Trust's working
capital position, as well as its ability to refurbish or upgrade equipment in
response to lessee requirements or other market circumstances. Class A
distributions have been maintained at an annualized rate of $1.64 per Class A
Interest since October 1996. Class B distributions were set at an annualized
distribution rate of $0.66 per Class B Interest commencing July 18, 1997 and
decreased to an annualized distribution rate of $0.44 per Class B Interest in
August 1998 following the Class B Capital Distribution paid at that time. Future
distributions with respect to Class B Interests will be subordinate to certain
distributions with respect to Class A Interests.

     Cash distributions to the Managing Trustee, the Special Beneficiary and the
Beneficiaries are declared and generally paid within 45 days following the end
of each calendar month. The payment of such distributions is

                                       15

<PAGE>

                             AFG Investment Trust D

                                    FORM 10-Q

                          PART I. FINANCIAL INFORMATION


presented as a component of financing activities. For the nine months ended
September 30, 1999, the Trust declared total cash distributions of $5,249,333,
including the special distribution described below. Of the total distributions,
the Beneficiaries were allocated $4,901,399 ($3,864,734 to Class A Beneficiaries
and $1,036,665 to Class B Beneficiaries); the Special Beneficiary was allocated
$310,320, and the Managing Trustee was allocated $37,614.

     In July 1999, the Trust distributed $1,572,405, including legal fees of
$84,520 paid to Plaintiffs' counsel, as a special cash distribution in
connection with the settlement of the Class Action Lawsuit described in Note 9
to the financial statements.

     Cash distributions paid to the Participants consist of both a return of and
a return on capital. Cash distributions do not represent and are not indicative
of yield on investment. Actual yield on investment cannot be determined with any
certainty until conclusion of the Trust and will be dependent upon the
collection of all future contracted rents, the generation of renewal and/or
re-lease rents, and the residual value realized for each asset at its disposal
date. Future market conditions, technological changes, the ability of EFG to
manage and remarket the assets, and many other events and circumstances, could
enhance or detract from individual asset yields and the collective performance
of the Trust's equipment portfolio.

     In the future, the nature of the Trust's operations and principal cash
flows gradually will shift from rental receipts to equipment sale proceeds as
the Trust matures and change as a result of potential new investments not
consisting of equipment acquisitions. As this occurs, the Trust's cash flows
resulting from equipment investments may become more volatile in that certain of
the Trust's equipment leases will be renewed and certain of its assets will be
sold. In some cases, the Trust may be required to expend funds to refurbish or
otherwise improve the equipment being remarketed in order to make it more
desirable to a potential lessee or purchaser. The Trust's Advisor, EFG, and the
Managing Trustee will attempt to monitor and manage these events in order to
maximize the residual value of the Trust's equipment and will consider these
factors, in addition to new investment activities and the collection of
contractual rents, the retirement of scheduled indebtedness, and the Trust's
future working capital requirements, in establishing future cash distribution
rates.

     During the past year, the Managing Trustee has evaluated and pursued a
number of potential new investments, several of which the Managing Trustee
concluded had market returns that it believed were less than adequate given the
potential risks. Most transactions have involved the equipment leasing, business
finance and real estate development industries. Although the Managing Trustee
intends to continue to evaluate additional new investments, it is considering
returning a portion of the Trust's capital to the Trust Beneficiaries in the
event that suitable reinvestment transactions are not identified.

     In accordance with the Trust Agreement, upon the dissolution of the Trust,
the Managing Trustee will be required to contribute to the Trust an amount equal
to any negative balance which may exist in the Managing Trustee's tax capital
account. At December 31, 1998, the Managing Trustee had a negative tax capital
account balance of $303,603. No such requirement exists with respect to the
Special Beneficiary.

                                       16

<PAGE>


                             AFG Investment Trust D

                                    FORM 10-Q

                           PART II. OTHER INFORMATION

<TABLE>
<CAPTION>

<S>                        <C>
        Item 1.            Legal Proceedings
                           Response:

                           Refer to Note 9 to the financial statements herein.

        Item 2.            Changes in Securities
                           Response:  None

        Item 3.            Defaults upon Senior Securities
                           Response:  None

        Item 4.            Submission of Matters to a Vote of Security Holders
                           Response:  None

        Item 5.            Other Information
                           Response:  None

        Item 6(a).         Exhibits
                           Response:  None

        Item 6(b).         Reports on Form 8-K
                           Response:  None

</TABLE>

                                       17

<PAGE>

                                 SIGNATURE PAGE


     Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below on behalf of the registrant and in the capacity and
on the date indicated.



                             AFG Investment Trust D


                               By:      AFG ASIT Corporation, a Massachusetts
                                        corporation and the Managing Trustee of
                                        the Registrant.


                               By:      /s/  Michael J. Butterfield
                                        ----------------------------------------
                                        Michael J. Butterfield
                                        Treasurer AFG ASIT Corporation
                                        (Duly Authorized Officer and
                                        Principal Accounting Officer)


                               Date:    November 4, 1999
                                        ----------------------------------------


                               By:      /s/  Gary Romano
                                        ----------------------------------------
                                        Gary M. Romano
                                        Clerk of AFG ASIT Corporation
                                        (Duly Authorized Officer and
                                        Principal Financial Officer)


                               Date:    November 4, 1999
                                        ----------------------------------------

                                       18